Stock Market & Financial Investment News

Key Energy initiating cost cutting initiativesKey Energy CEO Dick Alario stated, "As conditions in the U.S. services market are unfolding in 2015, we are enacting a series of cost cutting initiatives at both the corporate and field levels, which include fixed-cost, headcount and wage reductions, along with supply-chain efficiencies, in order to help mitigate margin pressures our businesses will face in this market. We see the economic rationale for our customers to exploit existing wellbores as one of the few resilient service opportunities in the U.S. landscape, and we also see it at the core of Key's future. Further, we expect that as the secular trend of the aging horizontal wellbore continues, the importance of our services will continue to grow, perhaps even more so in a moderated oil price environment, and Key has positioned itself to capitalize on this element of production maintenance demand. We believe that we are taking the appropriate actions, including sizing our cost structure to survive this downturn and preserving capital, to emerge a stronger company."